1) Solution: True
Explanation: A process o production provides a tangible product or a service and their unique characteristics indicates the best approach for development of a cost management system
2) Solution: True
Explanation: Inseparability indicates that consumption as well as production are inseparable for services
3) Solution: False
Explanation: The product uniqueness or units for cost accounting purposes does not relates to their common costs
4) Solution: False
Explanation: Activity level is the average activity use over the long duration and normal activity level is the level of production for one year
5) Solution: True
Explanation: The firms operating in job-order industries produce a numerous variety of jobs or products which differ from each other
6) Solution: True
Explanation: When materials are purchased, it's cost will "flows" into the inventory account of materials.
7) Solution: True
Explanation: Abnormal spoilage will be charged to the job which caused it
8) Solution: True
Explanation: A process refers to series of tasks that are completed for accomplishment of a goal.
Part I- True or False (22.5 points) 1. A production process may yield a tangible product...
13. The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost. 14. Transferred-in goods, must be converted to the units of measure used by the current department. 15. In operation costing, job-order procedures are used to assign direct materials costs and process procedures are used to assign conversion costs.
During April, the first production department of a process manufacturing system completed its work on 370,000 units of a product and transferred them to the next department. Of these transferred units, 74,000 were in process in the production department at the beginning of April and 296,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 96,000 additional units were in...
TRUE/FALSE. Write 'T' if the statement is true and 'F if the statement is false. 1) Unique or custom-made goods would be accounted for by using a process costing system 2) Conversion costs include direct labor and direct materials. 3) In a process costing system, the cost per equivalent unit is computed after computing equivalent units. 4) 4) Assigning costs to units completed and to units in ending work in process inventory in a second department is a five step...
During April, the first production department of a process manufacturing system completed its work on 320,000 units of a product and transferred them to the next department... Required Information (The following information applies to the questions displayed below] During April, the first production department of a process manufacturing system completed its work on 320,000 units of a product and transferred them to the next department of these transferred units, 64,000 were in process in the production department at the beginning...
During April, the first production department of a process manufacturing system completed its work on 385,000 units of a product and transferred them to the next department. Of these transferred units, 77,000 were in process in the production department at the beginning of April and 308,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 99,000 additional units were in...
TRUE/FALSE. Write T' if the statement is true and 'F if the statement is false. 1) Unique or custom-made goods would be accounted for by using a process costing system 1) 2) Conversion costs include direct labor and direct materials. 2) 3) In a process costing system, the cost per equivalent unit is computed after computing equivalent units 3) 4) Assigning costs to units completed and to units in ending work in process inventory in a second department is a...
During April, the first production department of a process manufacturing system completed its work on 420,000 units of a product and transferred them to the next department. Of these transferred units, 84,000 were in process in the production department at the beginning of April and 336,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 106,000 additional units were in...
The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows: May 1, work in process: Materials cost, 3,000 units $7,800 Conversion costs, 3,000 units, 50% completed 5,000 Materials added during May, 10,000 units 25,000 Conversion costs during May 30,400 Goods finished during May, 11,500 units 0 May 31 work in process, 1,500 units, 50% completed 0 All direct materials are placed in process at the beginning of the process, and the first-in, first-out...
Chapter 16 Process Costing and Analysis A production department in a process manufacturing system completed its work on 80,000 units of product and transferred them to the next department during a recent period. Of these units, 24,000 were in process W at the beginning of the period. The other 56,000 units were started and completed during the period. At C period-end, 16,000 units were in process. Compute the production department's equivalent units of produc- C tion for direct materials under...
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 84,000 were in process in the production department at the beginning of April and 336,000 were started and completed in April. April's beginning inventory units were 80% complete with respect to materials and 20% complete with respect to conversion. At the end of April, 106,000 additional units were in process in the...